Chase Freedom vs. Discover it

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The Rewards

Chase Freedom

5% cash back in the categories listed below, up to $1,500 in purchases every quarter (then 1% cash back)

1% cash back on all other purchases

$150signup bonus for spending $500 in the first 3 months

Access to the Chase Ultimate Rewards marketplace, where you’ll find special deals at participating retailers

You’ll need to go online and activate your 5% reward category before you can start earning points in it.

Here are the 5% cash back bonus categories from 2018, plus the 2019 categories for the first quarter:

QUARTER

5% CASH BACK CATEGORY

2018: January – March

Gas Stations, Internet/Cable/Phone Services, Various Digital Wallets

2018: April – June

Grocery Stores, PayPal, Chase Pay

2018: July – September

Gas Stations, Lyft, Walgreens

2018: October – December

Department Stores, Wholesale Clubs, Chase Pay

2019: January – March

Gas Stations, Tolls, Drugstores

Discover it

With this card, you’ll get:

5% cash back in the categories listed below, up to $1,500 in purchases every quarter (then 1% cash back)

1% cash back on all other purchases

Double Your Cash Back after your first year of cardmembership (new cardholders only)

Like the Freedom card above, you’ll need to go online and activate your 5% reward category before you can start earning points in it. If you forget to activate, you’ll need to contact customer service to get your rewards added retroactively to your past purchases.

You can redeem your cash back at any time and for any amount, or you can apply your rewards directly to purchases from Amazon.com.

The 5% cash back calendar for 2019 is:

Quarter

5% Cash Back Category

January – March

Grocery Stores

April – June

Gas Stations, Uber, Lyft

July – September

Restaurants, PayPal

October – December

Amazon.com, Target, Walmart.com

The Verdict

The right card for you will depend on your own shopping habits, so take a look at the cash back categories above.

I think the Discover card comes out on top here, because it tends to offer more general categories, giving you more potential retailers to earn 5% back at.

The Freedom card might be right for you if you’re a huge fan of Starbucks, Bed Bath & Beyond, and Overstock.com, but take note that you’ll only be able to get that 5% back for 3 months out of the year at those stores.

The Discover it will probably get you more rewards throughout the year, especially because Discover is doubling the cash back for the first year for new cardholders. This means you’ll eventually earn 10% cash back for purchases in those categories, and 2% cash back for every other purchase.

This offer makes the Discover it one of the most rewarding cards available today.

Looking for other kinds of reward credit cards, perhaps without rotating categories? Take a look at our picks for the Best Rewards Credit Cards.

The Benefits

Chase Freedom

The Chase Freedom is available in 2 possible service levels: regular Visa, and the premier-level Visa Signature.

The service level you get will depend on your credit history and finances; the most qualified applicants will enjoy more perks with Visa Signature, but the regular Visa service is not bad at all either. (Visa Signature benefits are listed below the standard benefits)

Shopping Benefits

Purchase Protection: Covers new purchases against damage and theft for 120 days, up to $500 per claim and $50,000 per account.

Return Protection: If the retailer won’t take back an item within 90 days of purchase, you can be reimbursed up to $250 per item, up to $1,000 per year.

Extended Warranty Protection: Extends an original U.S. manufacturer’s warranty by up to 1 year, for eligible warranties of 3 years or less.

Zero Liability Protection: You won’t be held responsible for fraudulent or unauthorized charges.

Travel Benefits

Travel and Emergency Assistance Services: Provides help if you get into trouble away from home, including medical and legal referrals.

Roadside Dispatch (for Visa cards) / Roadside Assistance (for MasterCard cards): For Visa cards, call 1-800-VISA-TOW for any kind of help on the road, like towing or a tire change ($59.95 fee per service call). For MasterCard cards, call the customer service number on the back of your card (service fees will apply).

Auto Rental Collision Damage Waiver: Provides coverage against collision damage and theft for rented cards, as long as the car rental company’s own insurance is declined.

Visa Signature Travel Benefits

If you qualify for a Visa Signature-level card, you’ll also receive these benefits.

Travel Accident Insurance: Provides up to $250,000 in coverage for accidental death and dismemberment, when you pay for air, bus, or cruise transportation with your card.

Trip Cancellation / Trip Interruption Insurance: Provides up to $5,000 in reimbursement for non-refundable expenses if your trip is cancelled or interrupted for eligible reasons, like sickness or severe weather.

Lost Luggage Reimbursement: Provides up to $3,000 in reimbursement if you or your family members’ checked or carry-on bags are lost or damaged.

Discover it

Account Benefits

Free FICO Score: Just log into your account online and you’ll be able to see your FICO score for free (provided by TransUnion).

Spend Analyzer: A tool to help you track and understand where your money is going.

Shopping Benefits

Cash at Checkout: Use your Discover it card like a debit card to get cash back when shopping at participating retailers. The extra cash will simply be added to your purchase amount, and will fall under the regular purchase APR.

Zero Liability Protection: You won’t be held liable for fraudulent charges.

The Verdict

As you can see, you’ll get quite a few more perks with the Chase card than the Discover.

But a great feature that the Freedom card lacks is the free FICO score, which would normally cost you money. This will help you monitor your credit and see how your score changes over time and in response to changes in your finances.

When it comes to travel, the Freedom card has the edge here. It will give you some benefits that the Discover it won’t, like Travel and Emergency Assistance Services, Roadside Dispatch, and more if you qualify for the Visa Signature level. These perks can definitely be useful, especially if you travel often, but it’s also possible that you won’t ever need them.

Chase Freedom

Discover it

Shopping:

Purchase Protection

Return Protection

Extended Warranty Protection

Zero Liability Protection

Chip-and-Signature EMV Technology

Travel:

Travel and Emergency Assistance Services

Roadside Dispatch / Roadside Assistance

Auto Rental Collision Damage Waiver

Visa Signature Travel Benefits:

Travel Accident Insurance

Trip Cancellation / Trip Interruption Insurance

Lost Luggage Reimbursement

Account:

Free FICO Score online

Shopping:

Cash at Checkout

Zero Liability Protection

Chip-and-Signature EMV Technology

The Costs & Fees

Card

Annual Fee

Intro APR

Regular APR

Intro Balance Transfer APR

Regular Balance Transfer APR

Cash Advance APR

Foreign Transaction Fee

Chase Freedom

$0

0% Intro APR on Purchases for 15 months

17.24 - 25.99% Variable

0% Intro APR on Balance Transfers for 15 months

17.24 - 25.99% Variable

26.99% Variable

3% of each transaction in U.S. dollars

Discover it

$0

0% for 14 months

14.24%–25.24% Variable

0% for 14 months

14.24%–25.24% Variable

27.24% Variable

None

Card

Penalty APR

Late Fee

Returned Payment Fee

Chase Freedom

None

Up to $38

Up to $38

Discover it

None

$0 the first time; up to $37 after that

Up to $37

The Verdict

The costs and fees of these cards are quite similar – they both have quite long 0% introductory rates, though the Freedom’s is 3 months longer (not a major difference, in my opinion). After that, the regular purchase APRs are almost identical.

Neither of these cards have a penalty APR that could be applied if you miss a payment, but only Discover will forgive your first late payment (again, not a major difference, but a nice touch).

Other than that, the only real difference here is that the Freedom card has a 3% foreign transaction fee, so you won’t want to bring it with you when traveling out of the country. The Discover it has no transaction fee.

The Bottom Line

Check the 5% categories above: do you find yourself in those stores often? Many people do, and chances are one of these cards could help you save some money on your everyday spending.

Keep in mind that the Discover it is also doubling the cash back that new cardholders earn after their first year, making this a very rewarding card.

10% off in those categories is a great discount, especially when you take a look at the savings you’ll get during the holiday season.

Unfortunately you won’t get a signup bonus with the Discover it like you do with the Freedom, but this is a small price to pay when you consider how long you’ll be using the card and racking up savings.

If you use the Chase Freedom or Discover it card, why do you like it? Click to leave your own review of the Freedom or Discover it card for other visitors, we’d love to hear from you!

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